hhgregg Looks For Success Where Most Find Failure

With a few big box retailers going under in recent years, it seems fair to ask whether yet another national big box retailer is what consumers really want to see. On top of that, more and more consumers are looking to general retailers like Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) or online vendors like Amazon (Nasdaq:AMZN) to buy their electronics. (For related reading, see Analyzing Retail Stocks.) 


That is a challenging backdrop for hhgregg (NYSE:HGG) - a regional big box electronics retailer that apparently thinks the nation needs another place to go shopping. Investors should give credit where it's due, though; the company has managed a solid pace of expansion while keeping a clean balance sheet and there just may be room for a truly new mousetrap.


Surprising Good Results Given a Tough Market
The best way to categorize hhgregg's fiscal fourth quarter is that the company must have a staff of alchemists on retainer, as this retailer seemed to do a very good job of transforming chicken-you-know-what into chicken salad. Comps were down almost 11% this quarter, and yet the company managed to handily exceed the bottom-line estimate without resorting to shadowy "other" income or suspiciously low tax rates.



To read the full piece:
http://stocks.investopedia.com/stock-analysis/2011/HHGregg-Looks-For-Success-Where-Most-Find-Failure-HGG-BBY-WMT-TGT-AMZN-GME-AAPL0530.aspx